TSX-listed Ivanhoe Mines has initiated a feasibility study for the first phase of the development of its Platreef project, in Limpopo.

The study, which kicked off early this month, aims to build on the positive findings of the prefeasibility study (PFS) completed in January for the construction of an underground mine, concentrator and other associated infrastructure to support initial concentrate production of four-million tonnes a year by 2019.

The Canadian platinum-group metals producer aims to develop the Platreef platinum, palladium, rhodium, gold, nickel and copper mine in three phases after the PFS has confirmed the “excellent” economics and technical viability of the low-cost operation.

The PFS estimates a preproduction capital cost of $1.2-billion, including $114-million in contingencies, to deliver the first-phase operation of 433 000 oz of platinum, palladium, rhodium and gold, in addition to 19-million pounds of nickel and 12-million pounds of copper a year.

The company has also progressed site work at the mine that will eventually expand production to eight-million tonnes a year in the second phase, before reaching a steady-state 12-million-tonne-a-year operation in the third phase.

Ivanhoe says it has completed 80% of the work on the electricity substation, which will have an initial capacity of 5 MVA, and power lines from State-owned power utility Eskom that will be used for the sinking of Shaft 1.

The company expected the operations of Phase 1 to use around 100 MVA when fully operational.

The construction of the large, concrete shaft collar and plenum is under way, as is commissioning of the presink winder that will sink Platreef’s Shaft 1 to a depth of around 60 m below surface.

The construction of the foundations for the large winding equipment needed to sink the shaft below 60 m is almost complete.

Shaft 1, which will have an internal diameter of 7.25 m, is projected to reach a total depth of 975 m by 2018.

Other work on site includes the construction of the primary terraces for Shaft 1 and the stormwater pond.